Gold Prices Pop After GDP Numbers

Source: The Street, Andrea Tse (10/29/10)

"U.S. GDP numbers met expectations, stocks appeared lackluster."

Gold prices remained in positive territory Friday morning as U.S. gross domestic product numbers met expectations and stocks appeared lackluster.

Gold for December delivery was popping by $5.50 to $1,348 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Friday has traded as high $1,352.90 and as low as $1,335.20.

The U.S. dollar index was adding 0.1% to $77.40, while the euro was down 0.3% to $1.39 against the dollar. The spot gold price was up more than $4, according to Kitco's gold index.

The Department of Commerce at 8:30 on Friday reported that the U.S. economy grew by 2% in the third quarter, which was in line with expectations, according to Briefing.com, though a Dow Jones Newswires poll of economists showed consensus GDP growth expectations of 2.1%.

The economy grew by 1.7% in the second quarter.

Other U.S. economic data slated for release on Friday included the Chicago Purchasing Managers Index and the Reuter's-University of Michigan's Consumer sentiment index.

On Thursday, gold prices climbed as the dollar caved on quantitative easing concerns. Gold prices were shifting between positive and negative territory throughout the week as traders and investors tried to factor in the size of the Fed Reserve's next round of quantitative easing (QE). Although another round of QE is expected, many are still concerned that the size of it may be less than expected.

The next set of Federal Open Market Committee minutes will be released at 2 p.m. next Wednesday.

"As a whole we expect the theme of dip-buying to continue, particularly in gold as physical buying picks up ahead of peak buying period," FastMarkets research analyst James Moore said in a daily newsletter. "Silver could also be in for a choppy ride as the hearing into market manipulation continues."

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

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"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

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Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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